As we all know the US trade deficit is in the billions and growing, actually $20,013,261,794.72 and growing. http://www.americaneconomicalert.org/ticker_home.asp "...theory has been proved wrong over the last 30 years as the United States has run consistent and increasing trade deficits. The enormous size of the trade deficits over the last several years raises the possibility of a severe international economic crisis should foreigners begin to dump the dollars they hold in world currency markets. The trade deficit is calculated on an annual basis, so the number above was $0.00 on January 1st, 2008." So what it means I guess that it effects the value of our dollar, so if foreigners decide to dump the dollar, which they are (its trading at 1.48 against the Euro as of late) what do you think this can mean to you and I?
The deficit is getting smaller because of the failing dollar. It would be even smaller if it wasn't for $100 oil.
The US at present is in an economic turmoil. Depreciating dollar and rising oil prices add to the woes. Mr.Bush does his best to control the inflation and unemployment. This should not assume a monstrous proportion for the next president. Hope things will ease in the coming days